‘The Attorney General of Texas 

October 5, 1979 

MARK WHITE 

Attorney General 

Honorable George M. Cowden Opinion No. MW-5 5 

Chairman, Public Utility Commission 

of Texas Re: Assessments that Public 

7800 Shoal Creek Blvd., Suite 400N Utility Commission may collect 

Austin, Texas 78757 from water supply corporations 

removed from its jurisdiction. 

Dear Mr. Cow&n: 

You ask several questions about the payment of assessments by water 

supply or sewer service corporations which were removed from the 

jurisdicti,on of the Public Utility Commission (PVC) as of April 19, 1979. 

Section 78 of the Public Utility Regulatory Act, V.T.C.S. article 1448% 

provides as fallows: 

An assessment is hereby imposed upon each public 

utility within the commission’s jurisdiction serving 

the ultimate consumer equal to one-sixth of one 

percent of its grossreceipts from rates charged the 

ultimate consumers in Texas for the purpose of 

defraying the costs and expenses incurred in the 

administration of this Act. Thereafter the 

commission shall, subject to the approval of the 

Legislature, adjust this amessment to provide a level 

of income sufficient to fund commission operation. 

Assessments are due on August 31 of each year, and covered utilities may 

make quarterly payments of their aasemments. In each case, the payment is 

made after the assessment year or quarter has passed. See Attorney 

General Opinion H-8ll (1978). Senate Bill 418, effective Apil19, 1979, 

removed water supply end sewer service corporations from PUC jurisdiction, 

except for the purpose of issuing certificates of convenience and necessity. 

V.T.C.S. art. 1448c, SS 3(a), (c), (II); 49(b); Acts 1979, 86th Leg., ch. 57 at 93. 

You ask whether water supply corporations must pay the assessment 

for the quarters during which they were subject to the commission’s 

regulation. The messment imposed by section 78 is an ongoing assessment 

for the purpose of defraying administrative costs. The legislative intent, as 

reflected in the language end structure of the statute, is that water supply 

p. 201 
Honorable George M. Cowden - Page Two (MI+65) 

corporations are rewonsible for the portion of the assessment attributable to the time 

period they remained under PUC jurisdiction. 

You next ask whether the commission may prorate the amessment due and payable 

for the portion of the aassessment year up to April 19, 1979, and collect the prorated 

assessments from the water supply corporations. On the basis of our conclusion that the 

assessment & an cngoing obligation, we believe the commission may do so. 

You finaIly ask whether the commission may require any additional assessments for 

any quarters after April 19,1979, against the water supply corporation. As of that date, a 

water supply corporation ceased to be a “public utility within the commission’s 

jurisdiction”; hence, section 78 no longer imposed the assessment on it. 

SUMMARY 

Water supply corporations, removed from the jurisdiction of the 

Public Utility Commission as of April 19, 1979, must pay 

aseessments imposed by section 78 of V.T.C.S. article 1446~ for the 

period during which they were subject to PUC jurisdiction. 

-v@wtmo~. 

MARK WHITE 

Attorney General of Texas 

JOHN W. PAINTER, JR. 

Pimt Assistant Attorney General 

TED L. HARTLEY 

Executive Assiitant Attorney General 

Prepared by Susan Garrison 

Assistant Attorney General 

APPROVED: 

OPINION COMMlTTRE 

C. Robert Heath, Chairman 

David B. Brooks 

Susan Garrison 

Rick Gilpin 

William G Reid 

Martha V. Terry 

Bruce Youngblood 

p. 202